Procedures of Legalization of Association’s Legal Entity

Association is a legal entity that consists of group of people that is established to achieve the equality of purpose and objective in social, religion, and humanity field as well as not distributing any profits for its member (“Association”). To do some legal activities, association has to obtain legalization from the Minister of Law and Human Rights (“MoHLR’). Procedures of legalization of Association as legal entity are regulated under the Regulation of MoHLR No. 6 of 2014 on Legalization of Association Legal Entity (“Regulation of MoHLR No. 6 of 2014”). Applicant is every person, either individually or jointly, who directly gives the power of attorney to notary to submit request to the administration system of legal entity (“Applicant”). The regulation of MoHLR No. 6 of 2014 issued on March 25th, 2014 and it is applied since the issuing date.

The Request of Submitting the Name of Association

The application to legalize the association as legal entity shall be started with the submission of the name of Association, through the Administration System of Legal Entity (“SABH”). The application is submitted by fulfilling the form of submission for the name of association that consists of (i) the approval number of name usage payment from the receiving bank, and (ii) the reserved name of association. The total payment is in accordance with the regulation on non-tax State revenues applicable in the Ministry of Law and Human Rights (“Ministry”). The paid cost is only applicable for maximum 60 (sixty) days since the payment date. The Association’s reserved name shall comply with the regulation. The applicant shall fulfill the statement form declaring that the Association’s reserved name complies with the regulation and fully responsible on the reserved name of association.

MoHLR gives the approval electronically on the application of the name of association, which consists of (i) reservation number, (ii) Association’s name which is able to use, (iii) the reservation date, and (iv) payment code. Nevertheless, MoHLR is able to electronically refuse the application of name of Association if it does not fulfill the requirements. The name of association which has been agreed is only applicable for maximum 60 (sixty) days.

The Application of Legalization of Association Legal Entity

The application to legalize the association as legal entity is submitted electronically to MoHLR by fulfilling the establishment form of validation association of legal entity (“Establishment Form”). For that purpose, the applicant shall pay the application fee through a bank before filling in the Establishment Form. The total payment of the application cost is regulated in the regulation on non-tax State revenues that is applicable in the Ministry.

The filling of Establishment Form is complemented with supporting documents that are submitted electronically, through an electronically-submitted statement letter from the applicant declaring that the document for establishment is complete. The establishment document is kept by the notary comprises:

a deed of establishment that is issued by the notary which includes the article of association and the By-laws;

business plan;

source of fund;

a domicile letter;

the taxpayer registration number of association; and

the statement letter declaring that the association is not in the administration disputes or dispute in the court.

Furthermore, the applicant shall fulfill the electronically-submitted statement letter declaring that the Establishment Form and the information on the supporting documents comply with the regulation. If the Establishment Form and information on the supporting documents comply with the regulation, MoHLR will accept the application directly (“Statement of No Objection”). MoHLR issues the decree of the legalization of association as legal entity at the latest 14 (fourteen) days since the Statement of No Objection (“Validation”). The Validation is issued to applicant electronically, and the notary is able to print the Validation.

Non-Electronic Application

If the application of legalization of Association as legal entity is unable to be electronically-submitted as a result of the network problem in the Notary’s location, or the SABH does not work properly based on the announcement from MoHLR, the applicant may submit the application manually. The application is submitted in writing by attaching (i) supporting documents and/or (ii) the information letter from the head office of telecommunications declaring that internet facility has not reached the Notary’s office.

About Us

Leks&Co is an Indonesian multi-services law firm, full of young, dynamic, and intelligent people, operating at a definite quality management system, rendering preeminent and world-class legal services under a specified quality code, core values, and client service standard.